Project Management Question Bank
for Exam preparation

Q2. A project manager has just started planning his project. If he has only limited information about the project, he should use the following technique to estimate the duration for each activity using historical data from a similar project:

1. Four-point estimating
2. Three-point estimating
3. Analogous estimating
4. Parametric estimating

Q3. As you create the Activity List, which technique is recommended for subdividing the project into smaller components called activities?

1. Decomposition
2. Rolling Wave Planning
3. Expert Judgment
4. Deconstruction

Q4. Who of the following are ALWAYS stakeholders?

1. A person who does not want the project to be completed.
2. An assembly line worker that will use the product of the project
3. A functional manager from the engineering department.
4. A person who might lose his or her position in the company because of the project

Q5. Decision tree analysis is used to calculate the average outcome when the future includes scenarios that may or may not happen. What are a decision node’s inputs and outputs?

1. Input: Cost of each decision; Output: Probability of occurrence
2. Input: Cost of each decision; Output: Decision made
3. Input: Scenario probability; Output: Expected Monetary Value (EMV)
4. Input: Cost of each decision; Output: Payoff

Q6. Project setup costs are an example of:

1. Variable costs
2. Fixed costs
3. Overhead costs
4. Opportunity costs 14

Q7. There is a probability of 0.1 that a given risk will occur in a project. If it occurs, it will result in a loss of US $10,000. The insurance cost for this event is US $700, with a deductible amount of US $250. Should a rational project manager buy this insurance?

1. Yes, since $1,000 > $950.
2. Yes, since $1,000 > $700.
3. No, since the deductible amount changes the expected monetary value of the risk event.
4. No, since $1,250 > $1,000.

Q8. You have been assigned as the project manager for a software development project. You are currently communicating with stakeholders and addressing their issues and expectations. Which of the following documents are inputs to this effort?

1. The Issue log, Project charter, and Configuration management system
2. The stakeholder engagement plan, communications management plan, and the change log
3. The Project risk register, Work performance information, and Accepted deliverables
4. Business case, change requests, and control charts

Q9. Which of the following BEST describes a risk response owner?

1. The person who identified the risk
2. The department or company that is the source of the risk and most knowledgeable on the risk
3. The department or company that will be most affected by the risk
4. The person who will be responsible for implementing the risk response strategy.

Q10. While finalizing the WBS you assign each work package to a control account and establish a unique identifier for the same work from a code of account. These identifiers help you find a hierarchical sum of costs, schedule, etc. Which statement is true about the WBS?

1. It contains all project work
2. It authorizes the project manager
3. It is a hierarchy of project staff
4. It is a hierarchical breakdown of project resources